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EBay and PayPal took a big regulatory step toward their breakup today with the filing of a Form 10 with the Securities and Exchange Commission.

EBay and PayPal plan to split into two separate, publicly-traded companies in the second half of 2015. Because the companies will be selling stock, the SEC has an interest in seeing that the split-up is done correctly and transparently.

“The separation of PayPal from eBay will provide strategic flexibility to set up each standalone company for success while preserving the synergies between the two companies and minimizing dis-synergies,” the companies said on their respective blogs late Wednesday.

“We remain focused on setting up both businesses for long-term success, with greater strategic focus and flexibility to capitalize on their respective opportunities as global leaders in commerce and payments,” the blogs read.

A Form 10 is a basic regulatory document used to register the securities of a company, and to provide information about the company for potential private or institutional investors. This might include the company’s balance sheet information, information on the management, and guidance on the risks to the business in the future.

Today’s filings include “welcome” letters from both eBay and PayPal to prospective investors. PayPal’s letter contains this nugget:

“In 2014, approximately 162 million active customer accounts processed payments on our platform. Total payment volume over the last 12 months increased by 26 percent to $235 billion, as more consumers and merchants trusted PayPal to pay and get paid.”

Investors and regulators will be keen to read how exactly the breakup of the two companies might remove inefficiencies or redundancies in the businesses, and increase dividends later on.

EBay gave some specifics on that front in its last quarterly report, saying that it plans to reduce its head count globally by roughly 2,400 positions, or about 7 percent of its workforce. This, it said, would effect its eBay Marketplaces, PayPal, and eBay Enterprise businesses.

The online auction giant said it would explore “strategic options” for its eBay Enterpris business, which might include a sale or IPO. It also launched a $2 billion stock repurchasing program during January.


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